RMO No. 19-2013

REVENUE MEMORANDUM ORDER NO. 19-2013 issued on July 5, 2013 amends certain provisions of Revenue Memorandum Order (RMO) No. 45-2011, prescribing the guidelines and procedures in the conduct of pre-repair inspection and inspection and acceptance of deliveries of goods and services in the Bureau of Internal Revenue.

Pertinent portions of Section III (A) of RMO 45-2011, including Annex B, are hereby amended to read as follows:
“III. Organization:
A. National Office Committee

Inspection Committee
Chairman: Leonor S. Villalon-Rogers-ACIR, Planning and Management Service
Members : Nelly S. Ibo - Chief, Procurement Division
Roy B. Villena - Asst. Chief, Accountable Forms Division
Gilbert T. Obispo - Management Division
Stralenmer P. Moran - Internal Investigation Division
Ellen P. Gutierrez - Large Taxpayers Audit Division I

Acceptance Committee
Bobby U. Labajo - Chief, General Services Division
Jose C. Afable - Chief, Network Management and
Technical Support Division

For deliveries pertaining to supplies and other items for stocks and distribution and other Non-IT Resources, the Chief, General Services Division (GSD) shall be the signatory for the “Acceptance” portion of the Inspection and Acceptance Report. However, for contract deliverables pertaining to IT Resources, the signatory shall be the Chief, GSD together with the Chief, Network Management and Technical Support Division.

Date Issued - July 5, 2013

Download:

RMO 19-2013 Full Text

Annex B

Source:

BIR Philippines Website

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RMO No. 18-2013

REVENUE MEMORANDUM ORDER NO. 18-2013 issued on June 28, 2013 amends Revenue Memorandum Order (RMO) No. 7-2013 relative to the manner and procedures in the issuance of Certificates Authorizing Registration (CARs) and Tax Clearances (TCLs) for transactions or transfers within the area of jurisdiction of Revenue District No. 6.

The Commissioner of Internal Revenue shall sign/approve all CARs and TCLs covering transactions and transfers within the area of jurisdiction of Revenue District No. 6 (Urdaneta, East Pangasinan) of the Bureau. For this purpose, the process of receiving, processing, evaluating and recommending for the approval/disapproval of applications for CARs and TCLs under RMO No. 15-2003 shall continue to be observed. However, the Revenue District Officer or Assistant Revenue District Officer under Revenue District No. 6 shall only affix their initial (to signify their recommendation for approval) in the subject CARs or TCLs, and shall forward the applications and corresponding dockets to the Office of the Commissioner of Internal Revenue, through the Revenue Regional Director, Revenue Region No. 1 (Calasiao, Pangasinan), for final approval/signature by the Commissioner.

Date Issued - June 28, 2013

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RMO 18-2013 Full Text

Source:

BIR Philippines Website

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RMO No. 17-2013

REVENUE MEMORANDUM ORDER NO. 17-2013 issued on June 27, 2013 creates, modifies and drops Alphanumeric Tax Code on Excise Tax pursuant to Republic Act No. 10351, “An Act Restructuring the Excise Tax on Alcohol and Tobacco Products” as implemented by Revenue Regulations No. 17-2012.

Date Issued - June 27, 2013

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RMO 17-2013 Full Text

Source:

BIR Philippines Website

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RMO No. 16-2013

REVENUE MEMORANDUM ORDER NO. 17-2013 issued on June 27, 2013 creates, modifies and drops Alphanumeric Tax Code on Excise Tax pursuant to Republic Act No. 10351, “An Act Restructuring the Excise Tax on Alcohol and Tobacco Products” as implemented by Revenue Regulations No. 17-2012.

Date Issued - June 27, 2013

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RMO 16-2013 Full Text

Source:

BIR Philippines Website

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RMO No. 15-2013

REVENUE MEMORANDUM ORDER NO. 15-2013 issued on May 28, 2013 prescribes the CY 2013 Operational Key Performance Indicators (KPIs) and accomplishment reporting for the Large Taxpayers Service (LTS), LT National Office Divisions (LTNODs) and LT Divisions (LTDs)-Makati and Cebu.

The Assistant Commissioner, LTS, thru the concerned Head Revenue Executive Assistant, shall monitor the compliance of their respective offices. The Chief, LT Performance Monitoring and Programs Division shall prepare a Consolidated Accomplishment Report, for submission to the respective Assistant Commissioners/Measure Owners.

The Assistant Commissioners/Measure Owners shall monitor the submission of Accomplishment Reports of the LTS and submit consolidated report by KPI to the MANCOM, in accordance with the schedules specified in the Order.

Date Issued - May 28, 2013

Download:

RMO 15-2013 Full Text
Annex A
Annex B1 - D

Source:

BIR Philippines Website

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RMO No. 14-2013

REVENUE MEMORANDUM ORDER NO. 14-2013 issued on May 8, 2013 prescribes the revised office codes for the National Office and the Revenue Data Centers, in accordance with the approved BIR Rationalization Plan under Executive Order No. 366.

All internal revenue documents/official papers must contain the office code of the preparing/originating office. The office code specified in the Order must be indicated at the lower left hand corner of an official document.

Date Issued - May 8, 2013

Download:

RMO 14-2013 Full Text

Source:

BIR Philippines Website

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RMO No. 13-2013

REVENUE MEMORANDUM ORDER NO. 13-2013 issued on May 3, 2013 prescribes the work-around procedures in the accreditation of printers as a prerequisite to the printing of official receipts (ORs), sales invoices (SIs) and other commercial receipts and/or invoices.

All registered printers in the Integrated Tax Systems (ITS) who applied for accreditation and were initially evaluated by the Revenue District Offices (RDOs) /offices under Large Taxpayers Service (LTS) as to the completeness of the documentary requirements, per Operations Memorandum dated January 24, 2013, shall be published or posted in the BIR website as “Deemed Accredited Printers”. A Provisional Accreditation Number with validity period of six (6) months from posting in the BIR website shall be issued to all “Deemed Accredited Printers”.

A Certificate of Accreditation with Permanent Accreditation Number shall be issued to the printer only after evaluation and approval by the National/Regional Accreditation Board (N/RAB). The Accredited Printers with Certificate of Accreditation shall cease using the assigned Provisional Accreditation Number. Henceforth, the Permanent Accreditation Number shall be used in the printing of ORs, SIs and other commercial receipts and/or invoices.

The “Deemed Accredited Printers”, which were issued Revocation Notices upon notification, shall not be allowed to apply for Authority to Print Receipt and Invoices. However, all receipts and invoices printed by these printers shall remain valid until its expiration or until its full utilization, whichever comes first.

All printers issued with the Letter of Denial/Revocation Notice who intend to be accredited shall observe the same procedures as a new application for accreditation and shall undergo the same accreditation process.

A list of registered printers in the ITS and tagged as TP ENGAGED IN PRTG for at least three (3) years as of December 31, 2012 shall be the initial candidates for accreditation.

Date Issued - May 3, 2013

Download:

RMO 13-2013 Full Text
Annex A
Annex B, D, E, F, J
Annex C
Annex G
Annex H
Annex I

Source:

BIR Philippines Website

Thanks and Courtesy of Bureau of Internal Revenue 

RMO No. 12-2013

REVENUE MEMORANDUM ORDER NO. 12-2013 issued on May 3, 2013 prescribes the work-around guidelines and procedures in the processing of Authority to Print (ATP) official receipts (ORs), sales invoices (SIs) and other commercial invoices (CIs) in the interim period until the online ATP System is fully developed.

Only BIR Accredited Printers shall be authorized to print principal and supplementary receipts and invoices pursuant to Revenue Regulations (RR) No. 15-2012. However, printers that were issued provisional accreditation number shall also be allowed to print principal and supplementary receipts/invoices. Sub-contracting to non-accredited printer/s is strictly prohibited.
Taxpayers engaged in business, whether government or private, that use receipts/invoices issued thru Cash Register Machine/Point-Of-Sale Machines (CRM/POS) and/or Computerized Accounting System (CAS) shall not be covered under the Order.
National Government Agencies, Government-Owned and -Controlled Corporations and Local Government Units referred herein as Government Instrumentalities (GIs) engaged in governmental and/or proprietary function shall be guided by the following:
a. Governmental Function

i. For unregistered governmental function, apply for registration with the BIR pursuant to Title IX, Chapter II, Section 236 of the NIRC, as amended, by filing BIR form 1903;
ii. Not required to secure ATP in the printing of Government Accountable Form No. 51, Revenue Official Receipts (RORs), Tax Receipts and other receipts in whatever name or form being issued for governmental functions.

b. Proprietary Function (as defined in Revenue Regulations No. 18-2012)
i. For unregistered proprietary function

*If the registered address of the business activity is similar or co-located with the GI whose governmental function is already registered pursuant to Title IX, Chapter II, Section 236 of the NIRC, as amended, the GI shall file a registration information update by filing BIR Form No. 1905 for the following:

- Business Activity/ies
- Additional Tax Type/s Details
- Trade Name (if applicable)
- Books of Accounts

*If the registered address of the business activity is other than the registered address of the GI, the GI shall file an Application for Registration as Branch using BIR form No. 1903.

ii. Required to secure ATP prior to the printing of its principal and supplementary receipts/invoices indicating all information required under this Order.

The application for ATP (BIR Form No. 1906, as revised), together with the necessary documentary requirements, shall be submitted to the Revenue District Office (RDO)/Large Taxpayer Office (LT Office) concerned having jurisdiction over the Head Office (HO) of the taxpayer-applicant. However, the old BIR Form No. 1906 shall still be used until the revised form becomes available. In the interim, all applications for ATP shall be processed using the Registration System of the Integrated Tax System (ITS), which shall generate the prescribed ATP under RMO No. 83-99, as amended by RMO No. 28-2002. The following information shall be typed or printed on the ATP that will serve as guide/reference for accredited printers in printing principal and supplementary receipts and invoices, to wit:
a. Date of ATP;
b. Validity period of the ATP;
c. Printer’s Accreditation Number; and
d. Date of Accreditation.

The buyer of goods on account or credit evidenced by a Charge Sales Invoice shall be entitled to claim input taxes. Upon collection of the account by the seller, a Collection Receipt (Supplementary Receipt) shall be issued to the client/buyer to evidence the receipt thereof. The principal and supplementary receipts and invoices of the HO and each of the branches shall have its own independent series of serial number.

The ORs/SIs/CIs shall be printed showing among others the information specified in the Order. For taxpayers transacting with Senior Citizen/s (SC/s) and/or Person/s With Disability, pursuant to Republic Act No. 9994 (“Expanded Senior Citizens Act of 2010”), they shall provide the following information in addition to the information specified in the Order:
a. Senior Citizen TIN;
b. OSCA ID No./PWD ID No.;
c. Senior Citizen Discount/PWD Discount; and
d. Signature of the Senior Citizen/PWD.

Other information, size, and/or format, as necessary, depending on industry peculiarity and taxpayer needs, are allowed to be included in the printing of principal and supplementary receipts/invoices, provided that such receipts/invoices are compliant with the Order.

A taxpayer with expiring principal and supplementary receipts/invoices shall apply for a new ATP not later than sixty (60) days prior to the actual expiry date.

A Committee on Destruction and Disposal of Surrendered Expired/Expiring Receipts/Invoices shall be created comprised of the officials specified in the Order. The Revenue Data Center (RDC) concerned shall act on technical issues and concerns raised by taxpayers. Conversely, operational issues shall be acted upon by the Revenue District Office (RDO)/Large Taxpayers (LT) office concerned.

All unused/unissued principal and supplementary receipts/invoices printed prior to January 19, 2013 (effectivity of RR No. 18-2012) and those printed by printers which are not compliant with the Order shall be valid until June 30, 2013. The taxpayer shall submit an inventory list of principal and supplementary receipts/invoices and surrender the hard copies of the receipts/invoices to the RDO/LT office concerned where the taxpayer is registered on or before July 10, 2013. Branch Office/s shall submit and surrender the same to the RDO/LT office concerned where the branch is registered.

All new set/s of principal and supplementary receipts/invoices to be printed, which are compliant with the requirements set forth under the Order shall have a validity period of five (5) years. All unused/expired/expiring ORs/SIs/CIs shall be surrendered together with an inventory listing to the BIR office having jurisdiction over the taxpayer for destruction on or before the 10th day after the validity period of the expired receipts/invoices.

Pending the availability of the online ATP System, the scanned copy of the issued ATP shall be printed at the inside back portion of the cardboard cover of each booklet/pad of principal and supplementary receipts/invoices printed. The size of the scanned copy shall be of the same size as that of the back cover of the booklet/pad.

ATPs generated thru the ITS pursuant to the Order shall be migrated to the online ATP System upon its availability.

Date Issued - May 3, 2013

Download:

RMO 12-2013 Full Text
Annex A
Annex B
Annex C
Annex D
Annex E

Source:

BIR Philippines Website

Thanks and Courtesy of Bureau of Internal Revenue 

RMO No. 11-2013

REVENUE MEMORANDUM ORDER NO. 11-2013 issued on April 23, 2013 prescribes the procedure for processing and responding to requests for official information or documents from the Bureau of Internal Revenue (BIR).

All requests for official information or documents from the BIR made by any government office, department, bureau, agency and instrumentality; or by private entities shall be addressed to the Commissioner of the Internal Revenue. Should a request for official information or document be received by another office within the BIR, it shall be immediately be transmitted to the Office of the Commissioner.

All responses to said requests shall be coursed through the Commissioner. Under no circumstances shall a revenue official or employee provide or made known, in any manner, official information or documents to a government office, department, bureau, agency or instrumentality, or to a private entity without prior written approval from the Commissioner.

Any violations on the said procedure shall be considered as administrative infractions under the Revised Code of Conduct for BIR Officials and Employees.

Date Issued - April 23, 2013

Download:

RMO 11-2013 Full Text

Source:

BIR Philippines Website

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RMO No. 10-2013

REVENUE MEMORANDUM ORDER NO. 10-2013 issued on April 22, 2013 prescribes the revised guidelines and procedures in the issuance and enforcement of Subpoenas Duces Tecum (SDT) and the prosecution of cases for non-compliance therewith.

The Order shall cover the following persons/entities enumerated under Section 5 of the National Internal Revenue Code (NIRC), as amended, to wit:

a. Person liable for tax or required to file a return or any officer or employee of such person, or any person having possession, custody, or care of the books of accounts and other accounting records containing entries relating to the business of the person liable for tax; and

b. Any person other than the person whose internal revenue tax liability is subject to audit or investigation, or from any office or officer of the national and local governments, government agencies and instrumentalities, including the Bangko Sentral ng Pilipinas and Government-Owned or Controlled Corporations (GOCCs).

The Head of the Revenue District Office/Large Taxpayers Audit Division/Large Taxpayers District Office/National Investigation Division/Special Investigation Division concerned or any other officer duly delegated by the Commissioner (e.g., Head of the Letter Notice Task Force) shall make a written notice to any of the persons enumerated above to provide information or the pertinent books of accounts, accounting records and particular or specific documents.

In case the information or records requested are not furnished within the period prescribed in the written notice, or when the information or records submitted are incomplete, the concerned Revenue Officer conducting a verification or investigation (covered by a Memorandum Order, Mission Order, Letter of Authority, Tax Verification Notice or Letter Notice) shall request for the issuance of SDT from the following through a Memorandum Report, stating therein the relevant facts, specifying the particular documents or records not made available to him and the taxpayer liable or the third party/office concerned:
a. Assistant Commissioner, Enforcement and Advocacy Service, through the Prosecution Division – for the National Office;
b. Assistant Commissioner, Large Taxpayers Service, through the Prosecution Division – for taxpayers under the jurisdiction of the Large Taxpayers Service, including Large Taxpayers District Offices;
c. Revenue Regional Directors, through the Legal Divisions – for the Regional Offices; or
d. Any other officer duly delegated by the Commissioner.

In case the request for issuance of SDT is found to be meritorious, the SDT shall be issued to the person liable for tax or required to file a return, or should the information or records be in the possession of a third party or office, then in that party’s name, requiring the concerned person to appear and submit before the signatory of the SDT the mandated information/documents at an appointed time, date and place.

In case of corporations, partnerships or associations, the SDT shall be issued to the partner, president, general manager, branch manager, treasurer, registered officer-in-charge, employee/s or other persons responsible for the custody of the books of accounts and other accounting records mandated to be submitted or information mandated to be provided. To ascertain the names of the incumbent of the aforesaid positions, the concerned Revenue Officers may access, among others, the latest General Information Sheet filed by the corporation with the Securities and Exchange Commission.

If the concerned party is the national and local government, government agencies and instrumentalities, including the Bangko Sentral ng Pilipinas and GOCCs, the SDT shall be issued to the head of such office, agency, instrumentality, political subdivision or GOCC. If the head shall comply through a representative, the latter shall present the SDT, written authorization letter from the head, and sufficient proof of identification.

The compliance date for the submission of books of accounts and other accounting records shall be set on the 14th day from date of issuance of the SDT, which shall be the date when it was officially signed.

The SDT shall be served by the concerned Revenue Officers within three (3) days from receipt thereof by delivering personally a copy of the SDT to the party at his registered or known address or wherever he may be found.

In case personal service is not practicable, the SDT shall be served by substituted service or by mail. Substituted service can be resorted to when the party is not present at the registered or known address under the following circumstances:

a. The SDT may be left at the party’s registered address, with his clerk or with a person having charge thereof.

b. If the known address is a place where business activities of the party are conducted, the SDT may be left with his clerk or with a person having charge thereof.

c. If the known address is the place of residence, substituted service can be made by leaving the copy with a person of legal age residing therein.

d. If no person is found in the party’s registered or known address, the revenue officers concerned shall bring a barangay official and two (2) disinterested witnesses to the address so that they may personally observe and attest to such absence. The SDT shall then be given to said barangay official. Such facts shall be contained in the bottom portion of the SDT, as well as the names, official position and signatures of the witnesses.

e. Should the party be found at his registered or known address or any other place but refuse to receive the SDT, the Revenue Officers concerned shall bring a barangay official and two (2) disinterested witnesses in the presence of the party so that they may personally observe and attest to such act of refusal. The SDT shall then be given to said barangay official. Such facts shall be contained in the bottom portion of the SDT, as well as the names, official position and signatures of the witnesses.

Service by mail is done by sending a copy of the SDT by registered mail to the registered or known address of the party with instruction to the Postmaster to return the mail to the sender after ten (10) days, if undelivered. A copy of the SDT may also be sent through reputable professional courier service. If no registry or reputable professional courier service is available in the locality of the addressee, service may be done by ordinary mail.

The server shall accomplish the bottom portion of the SDT. He shall also make a written report under oath before a Notary Public or any person authorized to administer oath under Section 14 of the NIRC, as amended, setting forth the manner, place and date of service, the name of the person/barangay official/professional courier service company who received the same and such other relevant information. The registry receipt issued by the post office or the official receipt issued by the professional courier company containing sufficiently identifiable details of the transaction shall constitute sufficient proof of mailing and shall be attached to the case docket.

The concerned Revenue Officers are required to be present during the appointed time, date and place set for the presentation of the books of accounts and other accounting records in order to check if the records presented are the complete records being required as stated in the SDT. Non-compliance therewith shall subject violators to administrative liability.

Upon verification by the concerned Revenue Officers that the records presented are substantially complete, the documents presented shall be consolidated with the records of the case and shall be referred back to the appropriate office for continuation of the investigation. The concerned Revenue Officer shall submit a written report to the issuing office that the documents/records indicated in the SDT have been submitted or that there was either no submission or that the documents presented were so incomplete.

In case there is no submission or incomplete presentation of the required books of accounts and other accounting records, the action lawyer assigned to the case shall request the
concerned Revenue Officers for a conference on the 5th working day from the date set for compliance with the SDT. The Revenue Officers shall work jointly with the action lawyer in documenting/gathering evidence/s for the criminal prosecution of the individual who disobeyed the SDT.

Within seven (7) working days from the said conference, the action lawyer shall prepare a Letter-Complaint addressed to the Office of the Prosecutor, recommending the criminal prosecution of the individual taxpayer or third party; or the responsible officer/s or partner/s, who disobeyed the SDT for violation of Section 266 (“Failure to Obey Summons”) of the NIRC, as amended, together with the Complaint-Affidavit and its supporting evidentiary documents, properly marked. If the taxpayer concerned is a corporation, an association or a general co-partnership, the sanctions mandated under Section 256 (“Penal Liabilities of Corporations”) of the NIRC, as amended, shall likewise be imposed and invoked in the filing of a criminal case. The Letter-Complaint, together with the Complaint-Affidavit and its attachments, shall then be routed to the appropriate office/s for review and signature of the concerned revenue official/s. Once the Complaint-Affidavit has been filed for violation of Section 266 (“Failure to Obey Summons”) of the NIRC, as amended, no prosecuting officer of the BIR shall cause the withdrawal or dismissal of the case, notwithstanding the subsequent submission of documents indicated in the SDT.

In the preparation of the Complaint-Affidavit, the Revenue Officers, as the persons who have personal knowledge of the non-compliance with the SDT shall be the complainants. In the preparation of the Letter-Complaint to the Office of the Prosecutor, the Regional Director for SDTs issued by the Revenue Regions and the Deputy Commissioner for Legal and Inspection Group for SDTs issued by the Enforcement and Advocacy Service and the Large Taxpayers Service, shall be the signatories. Upon return of the duly signed Letter-Complaint, together with the Complaint- Affidavit and its attachments to the originating office, it shall then be immediately filed with the Office of the Prosecutor that has jurisdiction over the case.

Date Issued - April 22, 2013

Download:

RMO 10-2013 Full Text
BIR Form No. 0713

Source:

BIR Philippines Website

Thanks and Courtesy of Bureau of Internal Revenue 

BIR Issuances and Rulings

Revenue Regulations (RRs)   are issuances signed by the Secretary of Finance, upon recommendation of the Commissioner of Internal Revenue, that specify, prescribe or define rules and regulations for the effective enforcement of the provisions of the National Internal Revenue Code (NIRC) and related statutes

Revenue Memorandum Orders (RMOs)   are issuances that provide directives or instructions; prescribe guidelines; and outline processes, operations, activities, workflows, methods and procedures necessary in the implementation of stated policies, goals, objectives, plans and programs of the Bureau in all areas of operations, except auditing.

Revenue Memorandum Rulings (RMRs)   are rulings, opinions and interpretations of the Commissioner of Internal Revenue with respect to the provisions of the Tax Code and other tax laws, as applied to a specific set of facts, with or without established precedents, and which the Commissioner may issue from time to time for the purpose of providing taxpayers guidance on the tax consequences in specific situations. BIR Rulings, therefore, cannot contravene duly issued RMRs; otherwise, the Rulings are null and void ab initio

Revenue Memorandum Circular (RMCs)   are issuances that publish pertinent and applicable portions, as well as amplifications, of laws, rules, regulations and precedents issued by the BIR and other agencies/offices.

Revenue Bulletins (RB)   refer to periodic issuances, notices and official announcements of the Commissioner of Internal Revenue that consolidate the Bureau of Internal Revenue's position on certain specific issues of law or administration in relation to the provisions of the Tax Code, relevant tax laws and other issuances for the guidance of the public.

BIR Rulings   are official position of the Bureau to queries raised by taxpayers and other stakeholders relative to clarification and interpretation of tax laws.

Source:

BIR Philippines Website

Thanks and Courtesy of Bureau of Internal Revenue 

RMO No. 9-2013

REVENUE MEMORANDUM ORDER NO. 9-2013 issued on April 18, 2013 prescribes the CY 2013 Operational Key Performance Indicators (KPI) and Accomplishment Reporting for the Revenue Regions (RRs), Regional Divisions and Revenue District Offices (RDOs).

RDOs/Regional Divisions shall prepare and submit report on the accomplishment on performance measures/KPIs in accordance with the schedules specified in the Order.

The submitted accomplishment reports shall serve as a means of validation in the preparation of the Office Annual Performance Evaluation for the concerned BIR offices, and will be used as basis/input for next year’s office performance measures to be recommended to MANCOM.

Date Issued - April 18, 2013

Download:

RMO 09-2013 Full Text
Annex A

Annex B1, B2 and C

Source:

BIR Philippines Website

Thanks and Courtesy of Bureau of Internal Revenue 

RMO No. 8-2013

REVENUE MEMORANDUM ORDER NO. 8-2013 issued on April 5, 2013 prescribes the policies, guidelines and procedures in the implementation of the Mobile Revenue Collection Officers System (MRCOS).

The electronic receipts (eReceipts) generated from the Collection Officer Receipting Device (CORD) shall be issued to all concerned taxpayers and other third parties by all authorized collection officers upon their receipt of collections, as well as in acknowledging receipt of no-payment and non-cash-payment tax returns. These eReceipts shall be issued in lieu of the Revenue Official Receipt (RORs) and Official Receipt (ORs). For this purpose, CORDs shall be assigned only to duly authorized collection officers. Only Revenue Collection Officers (RCOs) and Special Collecting Officer (SCOs) who are duly bonded pursuant to existing rules and regulations shall be authorized to use the CORD. However, a non-bonded personnel may be allowed to use the CORD under the conditions specified in the Order.

In cases where the RCOs are servicing taxpayers whose registered addresses are located in more than one city or municipality, only one CORD shall be assigned to him/her for use in the issuance of eReceipts across these cities or municipalities. In the event that the CORD being used by the collection officer becomes unavailable due to malfunction, loss, discharged battery, or the like, the manual issuance of RORs/ORs may be allowed provided that the following conditions are met:
a. The problem has been duly logged with the BIR Help Desk prior to such manual
issuance of RORs/ORs and/or manual stamping of no-payment returns and non-cash
payment returns filed by taxpayers;
b. No replacement device has been received yet; and
c. The Head of Office/RDO has authorized in writing the temporary issuance of the
manual receipts/manual stamping of no-payment returns and non-cash payment
returns received, indicating therein the corresponding Issue Management Log
Number provided by the BIR Help Desk.

Immediately upon receipt of the replacement device, however, the concerned collection officer shall encode in the CORD the details of the previously issued manual RORs/ORs and generate the corresponding eReceipts. In cases of no-payment and non-cash payment returns/declarations/forms, the RCO/CO shall encode in the “Manual Acknowledgment Receipt Number” field in the CORD the Batch Control Sheet (BCS) number and the corresponding document series or transaction number indicated in the manually prepared BCS-B report. A copy of the generated eReceipt shall, in all cases, be attached to the BIR’s copy of the previously issued manual receipts and returns/forms/declarations received.

In order to avoid the occurrence of incidents resulting to non-issuance of eReceipts due to drained battery, all collection officers shall always ensure that the batteries of the CORDs are fully charged before the opening of the Bureau’s business hours. Furthermore, all collection officers shall refrain from turning “OFF” their respective CORDs during business hours to ensure readiness in the issuance of eReceipts. In order to monitor occurrence of instances where CORD’s unavailability is not due to acceptable reasons stated above but the same is attributable to “TURNED-OFF” device, the contractor may be required to submit a report thereon. In case of change of assignment of the collection officer within the same RDO/office, he/she may continue to use the CORD originally issued provided that the Administrative Section (AdmSec) of the RDO/Regional Administrative Division (AdmD)/Administrative Service (AdmS) is duly notified of such transfer. However, only employees who are authorized to use the CORD may be allowed to continue using their assigned units. Otherwise, these units shall be surrendered/returned to the AdmSec/AdmD/AdmS. Immediately thereafter, these latter offices shall notify the Collection Programs Division in writing such reassignment for purposes of updating the city/municipality assignments of the concerned collection officer.

In case of prolonged leave of absence for more than one (1) month, the CORD shall be surrendered to the AdmSec of the RDO/Regional AdmD/AdmS for re-assignment to other bonded collection officer. In case of transfer of the collection officer to another RDO/office, or death/retirement/resignation/separation of a collection officer from the service, the CORD shall be returned to the concerned Chief AdmSec of the RDO/Chief Regional AdmD/GSD Chief for safekeeping and monitoring purposes. The direct transfer of CORD from the outgoing to the incoming officer shall not be allowed.

Notwithstanding the issuance of eReceipts, the existing procedures in acceptance of tax returns/forms/declarations by stamping the word “Received” on the face of the tax returns/forms/declarations shall still be observed.

All one-time transactions (ONETTs), such as payment of Capital Gains Tax and Documentary Stamp Tax, shall only be paid in the Authorized Agent Banks, in accordance with the existing policies and guidelines on ONETT. As such, and in the meantime that the said policy has not yet been amended, the RCOs are prohibited from accepting tax payments for said transactions.

The acceptance of tax and non-tax payments, as well as no-payment/non-cash payment returns/forms/declarations shall be from 8AM to 5PM only. During tax deadlines, however, in case there are still taxpayers who are already in the office premises before 5PM, the collection officers must accept these payments/returns/forms/ declarations being filed. All such payments/returns/forms/declarations received during the day up to 12 midnight, even beyond the regular working hours, shall be considered as filed within such day.

The Commissioner may, upon written recommendation by the concerned RDOs, allow the acceptance of tax payments and tax returns/forms/declarations during weekends and holidays depending on the anticipated volume of transactions that will require the issuance of eReceipts. All tax return/form/declaration or payment orders received shall be batched and submitted by the collection officers to the concerned office Section Chief together with the generated BCS reports, in accordance with existing guidelines and policies.

The reprinting of a previously issued receipt by the concerned collection officer may be allowed only in the following cases:
a. There was no eReceipt printed although the transaction was completed; or
b. The CORD stopped functioning upon submission of the transaction details; or
c. The eReceipt was not properly printed due to paper jam or other similar or analogous circumstances.

A report showing the serial number of the reprinted receipt, reason for reprinting, and the number of times the eReceipt was reprinted shall be generated by the concerned collection officer through the Web-based MRCOS and the same shall be submitted to the RDO/Head of Office, through the concerned Section Chief. The reprinting of eReceipt not falling under the abovementioned conditions shall not be allowed. In lieu thereof, a Certification of Payment shall be issued by the RDO/Head of Office upon payment of a certification fee of P 100 for each and every payment transaction requiring such certification.

The direct cancellation by the collection officer of a previously issued eReceipt using the CORD due to erroneous encoding of information shall not be allowed. In order to correct the said erroneous transaction, a new and correct eReceipt must be issued by the collection officer by re-encoding the correct payment information to the CORD. Immediately thereafter, the collection officer shall submit a written request, together with the original taxpayer’s copy of the erroneously issued eReceipt, to the concerned Head of Office for cancellation of the said erroneous transaction in the Integrated Tax Systems-Collection and Banks Reconciliation System (ITS-CBR) or in the Electronic National Government Accounting System, whichever is applicable. Otherwise, the recorded collection arising from erroneously issued eReceipt shall be remitted by the collection officer to the Authorized Government Depository Bank (AGDB).

Prior to the approval of the collection officer’s request for cancellation of the reported erroneously issued eReceipt, it shall be incumbent upon the Head of Office to undertake all necessary and appropriate actions to validate the propriety of the said request. In order to preclude the possibility that correct eReceipts issued for legitimate transactions are not reported as erroneously issued eReceipt for cancellation, the Head of Office may verify or confirm the accuracy thereof directly with the concerned taxpayer/payor.

The collection and remittance information, as well as the information on no-payment/non-cash payment returns/declarations that were encoded by the collection officer into the CORD for the issuance of an eReceipt shall be automatically uploaded on real-time basis into the Web-based MRCOS; and the said information shall, in batches, be automatically uploaded to the ITS-CBR.

The concerned collection officer shall generate the List of Collections (LC) for eReceipts using the CORD at the end of the day or at the first business hour of the next working day. The LC shall serve as a guide in preparing the deposit slip for remittance of collections to the AGDB. Should there be any erroneous eReceipt information included in the LC that has already been reported to the Head of Office and covered by the written request for the cancellation thereof, the collection officer shall not include the corresponding amount in the remittance to the AGDB. Such amount will be included in the List of Undeposited Collection Report generated by the Web-based MRCOS. The approved request for cancellation of erroneous transaction shall be attached to the relevant List of Undeposited Collection Report as one of the bases to be used in the justification of such undeposited amount. All the remittances made by the concerned collection officer to the AGDB shall be encoded in the CORD using the “Update Collection As Deposited” facility immediately after each and every deposit has been made with the AGDB.

Notwithstanding the existence of facilities for the automatic generation of reports under MRCOS, the collection officer shall still maintain the Cash Receipts Book showing the summary of daily collections and deposits as well as the series of issued eReceipts to serve as the primary document for presentation to the Commission on Audit, Regional Finance Division, Regional Internal Audit Team and the Internal Audit Division during their respective conduct of spot audits.

All collection officers shall no longer be required to manually prepare the following reports that can be generated from the MRCOS web-based application:
a. Batch Control Sheet (BCS)-A for payment returns/forms/declarations
b. BCS-B for no payment/zero payment returns/forms/declarations
c. List of Deposited Collections
d. List of Undeposited Collections
e. Monthly Consolidated Report of Collection and Deposit
f. Cash Receipts Record
g. Discrepancy Report on Collection Against Deposit
h. Report on Cancelled eReceipts
i. Monthly MRCOS Utilization Report
j. KPI Reports

In order to comply with the requirements by other concerned offices for the submission of duly signed reports, however, the collection officers may generate the same from the Web-based MRCOS, affix his/her signature thereon, and manually submit the same to these offices based on existing rules and regulations. The performance of the collection officers shall be rated monthly according to the Schedule of Key Performance Indicators (KPIs). The KPI Report is accessible in the Web-based MRCOS by all concerned officials, as indicated in the approved Security Access Matrix.
All issues concerning the CORD, MRCOS Mobile application, Web-based facility or the telecommunication network signal shall be immediately logged in the BIR Help Desk for resolution by the concerned offices.

The RDO/Head of Office may confirm through email, letter, phone or whatever means of communication the accuracy/integrity of the recorded tax collection details with the concerned taxpayers/payors, whether or not such recorded collections are reported as erroneously encoded eReceipt or not.

The use of the CORD in the issuance of eReceipts for no-payment and non-cash payment tax returns/forms/declarations shall start on April 8, 2013. For this purpose, only those no-payment and non-cash payment returns/forms/declarations that are covered with eARs issued beginning April 8, 2013 shall be considered as officially filed with the BIR. The use of the CORD in the issuance of eReceipts for payment of taxes, certification fees and other non-tax collections shall start on May 1, 2013. Accordingly, only those eRORs/eORs covering receipts for payment returns/forms/declarations and payment slips issued beginning May 1, 2013 shall be considered as valid and officially issued by the BIR. In case eReceipts were already issued to taxpayers/payors prior to the cut-off dates mentioned in the immediately preceding paragraph, the same shall still be considered as valid and officially issued. In order to determine which of the issued eReceipts shall be considered as “valid”, the validation procedures prescribed in the Order shall be undertaken.

The cut-off date for the preparation of the inventory report of all unused ROR/OR still in the possession of the collection officers prescribed under Item I.2 of RMO No. 6-2013 is extended from February 28, 2013 to March 31, 2013. However, all the other guidelines and policies provided in the said RMO shall still be strictly observed.

Date Issued - April 5, 2013

Download:

RMO 08-2013 Full Text
Annex A

Annex B
Annex C
Annex C1-C4
Annex D
 

Source:

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RMo No. 7-2013

REVENUE MEMORANDUM ORDER NO. 7-2013 issued on April 4, 2013 prescribes endorsement of fraud cases discovered in the processing and issuance of Certificates Authorizing Registration (CARs) and Tax Clearances (TCLs), and amends the manner and procedures in the issuance of CARs and TCLs for transactions or transfers within the area of jurisdiction of Revenue Region (RR) No. 1, which is comprised of Revenue District Office Nos. 1 – Laoag, Ilocos Norte; 2 – Vigan, Ilocos Sur; 3 – San Fernando, La Union; 4 – Calasiao, West Pangasinan; 5 – Alaminos, West Pangasinan and 6 – Urdaneta, East Pangasinan.

All Revenue District Office, Assessment Divisions in the Regional Offices, and all other offices lodged with the function of processing and issuance of CARs and TCLs shall, upon discovery of evidence of fraud in the course of processing or evaluating new applications for CARs or TCLs, or those that have been previously issued, immediately transmit the docket of the case, together with a report on the initial findings, to the corresponding Special Investigation Division of their Revenue Regions, for investigation under the Run After Tax Evaders Program. However, for transfer of properties valued at P 10,000,000.00 or more, or for series of transactions considered fraudulent, which are deemed perpetrated by the same group of persons, the docket of the case shall be transmitted to the National Investigation Division, together with the report of initial findings. A copy of the report on the initial findings shall also be transmitted by the concerned office to the Offices of the Deputy Commissioner for Legal and Inspection Group and Operations Group.

For transactions and transfers within the area of jurisdiction of RR No. 1, the Commissioner of Internal Revenue shall be the one to sign/approve all corresponding CARs and TCLs. The concerned Revenue District Officers or Assistant Revenue District Officers under RR No. 1 shall only affix their initial (to signify their recommendation for approval) in the subject CARs and TCLs, and shall forward the applications and corresponding dockets to the Office of the Commissioner, through the Revenue Regional Director, for final approval of the Commissioner.

Date Issued - April 4, 2013

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RMO 07-2013 Full Text

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RMO No. 6-2013

REVENUE MEMORANDUM ORDER NO. 6-2013 issued on March 25, 2013 prescribes the policies and guidelines on the preparation and submission of Inventory Report of All Unused Revenue Official Receipts (ROR)/Official Receipts (OR) and reissuance thereof, in line with the nationwide implementation of Mobile Revenue Collection Officers System (MRCOS).

Effective March 1, 2013, the use of the Collection Officer’s Receipting Device (CORD) shall be strictly implemented and the issuance of RORs and ORs shall be discontinued, except in cases where manual receipting of collections may be allowed.

All Revenue Collection Officers (RCOs)/Special Collection Officers (SCOs) who have in their possession the ROR/OR booklets shall prepare the Report of Accountability for Accountable Forms (RAAF) as of February 28, 2013 and submit the same to the Administrative Section of the Revenue District Offices (RDOs) and the Administrative Division of the Regional Offices/Accountable Forms Division (AFD)-National Office, together with the accomplished BIR Form No. 2625 – Turn-over of Accountabilities and the corresponding booklets to be turned-over for proper accounting. All Section Chiefs of Administrative Section of the RDOs, Chiefs of Administrative Division of the Regional Offices and the Accountable Forms Division (AFD)-National Office (NO) shall account and validate all inventory reports submitted by the RCOs/SCOs. The unused ROR/ORs shall be kept by the said offices.

Only one (1) booklet of ROR/OR per municipality shall be issued to RCO/SCO under their jurisdiction. Under meritorious circumstances and upon recommendation by the Revenue District Officers/Chiefs of concerned Office/Division, however, more than one (1) booklet of ROR/OR may be issued to an RCO/SCO, for immediate issuance to taxpayers/concerned persons to acknowledge receipts by the said authorized BIR personnel of their respective payments, in case the CORD becomes non-operational/defective or technical problems are encountered in the use thereof. A RAAF and Stock Position Sheet shall be required for all subsequent requisitions of ROR and AF51 blank forms from the Accountable Forms Division.

In cases where manual receipts were issued from March 1, 2013 until the MRCOS facility has actually been used for receipt generation purposes, another RAAF shall be prepared. In order to capture all payment information in the MRCOS and the BIR’s Integrated Tax System, all pertinent information on the manually issued RORs and ORs during the said period shall be encoded into the CORD within five (5) days after the access account of RCO/SCO is activated in MRCOS.

The RDO Administrative Section/Regional Administrative Division/AFD-NO shall verify and reconcile the manually issued RORs/ORs with the RAAF submitted by the collection officers for any gap or missing number(s) or serial number(s) of the ROR/OR. An accomplished BIR Form No. 2622 shall be submitted for any lost/incomplete/ cancelled/damaged Accountable Forms.

Date Issued - March 25, 2013

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RMO 06-2013 Full Text
Annex 1
Annex 2
Annex 3

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RMO No. 5-2013

REVENUE MEMORANDUM ORDER NO. 5-2013 issued on March 21, 2013 prescribes the procedures and guidelines on the redemption of Notice of Payment Schedule relative to the implementation of the Value-Added Tax - Tax Credit Certificate Monetization Program pursuant to Executive Order No. 68 and Joint Circular No. 2-2012 among the Department of Finance, Department of Budget and Management and BIR, as implemented by Revenue Memorandum Order No. 21-2012.


Date Issued - March 21, 2013

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RMO 05-2013 Full Text

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RMO No. 4-2013

REVENUE MEMORANDUM ORDER NO. 4-2013 issued on March 18, 2013 prescribes the policies and guidelines in the audit of tax returns by Revenue District Offices.

Date Issued - March 18, 2013

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RMO 04-2013 Full Text

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RMO No. 3-2013

REVENUE MEMORANDUM ORDER NO. 3-2013 issued on March 1, 2013 prescribes the usage of the Exchange of Information (EOI) Work Manual.

The EOI Work Manual contains guide to the internal processes within the EOI Unit of the International Tax Affairs Division. It shall be the official reference of officers and staff of the EOI Unit to ensure compliance with the international standards for the implementation of the EOI provisions of the Philippines tax treaties and with requirements of our domestic laws and regulations and revenue issuances on EOI.

Date Issued - March 1, 2013

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RMO 03-2013 Full Text
Work Manual

Source:

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RMO No. 2-2013

REVENUE MEMORANDUM ORDER NO. 2-2013 issued on February 18, 2013 prescribes the policies, guidelines and procedures in processing specific requests for information pursuant to the exchange of information provision of Philippine Tax Treaties, in relation to Republic Act (RA) No. 10021, as implemented by Revenue Regulations (RR) No. 10-2010.

Exchange of information can only take place between competent authorities or their authorized representatives. Bypassing the competent authorities constitutes a breach of tax confidentiality which is expressly prohibited by Section 270 of the National Internal Revenue Code (NIRC) and by the terms of the BIR’s Double Taxation Agreements (DTAs) and Tax Information Exchange Agreements (TIEAs). Section 4 of RR No.10-2010 expressly designates the Commissioner of Internal Revenue (Commissioner) as the Philippine competent authority for Exchange of Information (EOI) purposes.

Exchange of information covers any information that is necessary or foreseeably relevant to the administration or enforcement of the domestic laws of the contracting parties concerning Income Taxes and other taxes covered by the terms of the BIR’s EOI arrangements. It includes information for cases that involve tax evasion and other criminal tax offenses but is not limited to such cases.

A request for information can include any or all of the following items but not limited to:
a. The fiscal residence of an individual or a company;
b. The tax status of a legal entity;
c. The nature of income in the source country;
d. The income and expenses shown on a tax return;
e. Business records (for instance to determine the amount of commissions paid to a company of another State);
f. Formation documents of an entity and documents about subsequent changes of shareholders/partners;
g. Name and address of the entity at the time of formation and all subsequent name and address changes;
h. Number of entities residing at the same address as the requested entity;
i. Names and addresses of the directors, managers, and other employees of a company for the relevant years, evidence (contracts and bank statements) of their remuneration, social security-payments and information about their occupation with regard to any other entities;
j. Banking records;
k. Accounting records and financial statements;
l. Copies of invoices, commercial contracts, etc.; and
m. The price paid for goods in a transaction between independent companies in both States
It must be stressed, however, that the scope of exchange of information is not limited to taxpayer-specific information but also includes information related to tax administration and compliance improvement, such as statistics, information about a particular industry, tax evasion trends, administrative interpretations and practices, laws, court decisions, official publications and other subjects.

Time periods during which tax situations may be examined vary from country to country, and the beginning of the tax year does not always coincide with the calendar year. Where there is a significant time lag between the time the information is supplied

and the year to which the information relates, a statute of limitations issue may arise. The question of whether use of the information is time barred has to be determined by reference to the statute of limitations rules of the country where the information is to be used.

The obligation to exchange information is mandatory and is not limited to information contained in the tax files held by the BIR. When a request is received from a treaty partner, the BIR will have to take action to obtain the information requested, if it is not available on its files. However, the BIR is not bound to go beyond its own internal laws and administrative practice in putting information at the disposal of the requesting state. Thus, the Commissioner can order the obtention of information, and even summon, examine and take the testimony of a person to acquire the information requested. In addition, the Commissioner can inquire into bank deposit accounts pursuant to Section 6(F) of the NIRC, as amended by RA No. 10021. Moreover, the Income Tax Return/s of specific taxpayer/s subject of a request of a treaty partner may be open for inspection upon the order of the President.

There are instances, however, where the obligation to exchange information is lifted and a request for information can be declined, viz:
a. Information that the requesting party would not be able to obtain under similar circumstances under its own laws or administrative practice;
b. Information relating to years not covered by DTAs or taxes not covered;
c. Disclosure of information requested would be contrary to public policy;
d. Information relating to the administration or enforcement of a provision of the tax laws which discriminates against a national of the requested party (i.e., Philippines) as compared with a national of the applicant party in the same circumstances; and
e. Information subject to legal privilege; that is confidential communications between attorneys or other admitted legal representatives in their role as such and their clients to the extent that the communications are protected from disclosure under domestic law.

The international standard for processing requests for information is 90 days from receipt of a request by the tax authority. However, this period may be extended where difficulties in obtaining and providing information are encountered. The procedures in responding to requests for information from tax treaty partners and making a request for information to tax treaty partners are specified in the Order.

All taxpayer information obtained pursuant to this Order are confidential and may only be disclosed in accordance with Philippine law (e.g., Section 270 of the NIRC). Confidentiality obligations are also imposed under the BIR’s EOI arrangements, which generally follow the rules of the OECD Model Tax Convention or Model TIEA. Moreover, the provisions cover not only information received in response to a request, but also information contained in competent authority letters, including the letter requesting information.

Generally, the Exchange of Information article in the BIR’s DTAs provides that any information received shall be treated by the Bureau as secret in the same manner as information obtained under the domestic laws of the Philippines and shall be disclosed only to persons or authorities (including courts and administrative bodies) concerned with the assessment or collection of, the enforcement or prosecution in respect of, or the determination of appeals in relation to taxes on income. Such persons or authorities shall use the information only for such purposes, but they may disclose the information in public court proceedings or in judicial decisions. However, some of the Philippines’ DTAs, e.g., those with Canada and Singapore, have even more restrictive confidentiality provisions. Accordingly, any disclosure of taxpayer information received under an EOI arrangement, outside of the BIR, must be in accordance with the terms of the relevant EOI arrangement and shall only be allowed after sign-off by the Commissioner or his/her duly authorized representative for this purpose.

The gathering of information by the BIR for a foreign tax authority pursuant to the latter’s request does not constitute an actual investigation of the BIR on the subject taxpayer or taxpayers nor authorizes the BIR to issue corresponding Letters of Authority on the request, unless warranted. However, information supplied by a bank or a financial institution to the BIR may be used by it in its own assessment, verification, audit, and enforcement of the taxpayer whose account and his or its transactions are now made known to the Bureau. Likewise, the BIR shall not be precluded from carrying out subsequent investigations on taxpayers whose transactions with foreign taxpayers were subject of examination by foreign tax authorities.

Date Issued - February 18, 2013

Download:

RMO 02-2013 Full Text
Template 1-11 and 13-15
Template 12

Source:

BIR Philippines Website

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RMO No. 1-2013

REVENUE MEMORANDUM ORDER NO. 1-2013 issued on January 24, 2013 prescribes the allocation of the CY 2013 BIR collection goal by implementing office.

The overall CY 2013 collection goal of the BIR has been set by the Department of Finance (DOF) at P 1,253.679 Billion. This goal includes the additional Excise Tax (sin tax) revenues, which shall be assigned to the Large Taxpayers Service (LTS).

The collection goal, which is based on the CY 2013 Medium Term Revenue Program (MTRP) rundate January 15, 2013, is higher than the CY 2012 goal of P 1,066.118 Billion by P 187.561 Billion, or 17.59%.

The LTS shall allocate its goal among its implementing units, and prepare the corresponding memorandum within five (5) working days upon the issuance of this Order.
The Deputy Commissioner of Operations Group and the Assistant Commissioner of LTS shall prepare and submit the appropriate revenue issuance to establish the policies, guidelines and methodology for the individual goal allocation of the respective implementing units under their jurisdiction, for the approval of the Commissioner.

Date Issued - January 24, 2013

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RMO 01-2013 Full Text
Annexes

Source:

BIR Philippines Website

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RR No. 12-2013

REVENUE REGULATIONS NO. 12-2013 issued on July 12, 2013 further amends Section 2.58.5 of Revenue Regulations (RR) No. 2-98, as amended, to read as follows:

“Section 2.58.5 Requirements for Deductibility. – Any income payment which is otherwise deductible under the Code shall be allowed as a deduction from the payor’s gross income only if it shown that the income tax required to be withheld has been paid to the Bureau in accordance with Secs. 57 and 58 of the Code.

No deduction will also be allowed notwithstanding payments of withholding tax at the time of the audit investigation or reinvestigation/reconsideration in cases where no withholding of tax was made in accordance with Secs. 57 and 58 of the Code.”

 (Published in Manila Bulletin on July 13, 2013)

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RR 12-2013 Full Text

Source:

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RR No. 11-2013

 REVENUE REGULATIONS NO. 11-2013 issued on June 6, 2013 prescribes the filing/submission of hard copy of the Certificate of Compensation Payment/Tax Withheld (BIR Form 2316) covering employees who are qualified for substituted filing, thereby amending Revenue Regulations (RR) No. 2-98, as last amended by RR No. 10-08.

Section 2.83 of RR No. 2-98, as amended, is hereby further amended to read as follows:
"Sec. 2.83. Statements and Returns. —
Section 2.83.1.Employees Withholding Statements (BIR Form No. 2316). — In general, every employer or other person who is required to deduct and withhold the tax on compensation including fringe benefits given to rank and file employees, shall furnish every employee from whose compensation taxes have been withheld the Certificate of Compensation Payment/Tax Withheld (BIR Form No. 2316) on or before January 31 of the succeeding calendar year, or if employment is terminated before the close of such calendar year, on the day on which the last payment of compensation is made. Failure to furnish the same shall be a ground for the mandatory audit of payor's income tax liabilities (including withholding tax) upon verified complaint of the payee.

Employers of MWEs are still required to issue BIR Form No. 2316 (June 2008 Encs version) to the MWEs on or before January 31 of the following year.

As a rule, the employer shall furnish each employee with the original and duplicate copies of BIR Form No. 2316 showing the name and address of the employer; employer's TIN; name and address of the employee; employee's TIN; amount of exemptions claimed, amount of premium payments on health and/or hospitalization insurance not exceeding P 2,400.00, if any; the sum of compensation paid including the non-taxable benefits; the amount of statutory minimum wage received by MWEs; Overtime pay, holiday pay, night shift differential pay and hazard pay received by MWEs; the amount of tax due; the amount of tax withheld during the calendar year and such other information as may be required. The statement must be signed by both the employer or other authorized officer and the employee, and shall contain a written declaration that it is made under the penalties of perjury. If the employer is the Government of the Philippines, its political subdivision, agency or instrumentality or government-owned or controlled corporation, the statement shall be signed by the duly designated officer or employee.

However, in cases covered by substituted filing, the employer shall furnish each employee with the original copy of BIR Form No. 2316 and file/submit to the BIR the duplicate copy not later than February 28 following the close of the calendar year.
xxxx xxxx xxxx”

Any employer/withholding agent, including the government or any of its political subdivisions and government-owned and -controlled corporations, who/which fails to comply with the said filing/submission of BIR Form 2316 within the time required by the Regulations,
may be held liable under Section 250 of the Tax Code. Failure to comply with the said filing/submission within the required time for two consecutive years shall be dealt with in accordance with Section 255 of the Tax Code.

The Regulations shall take effect beginning with the calendar year 2013.

(Published in Manila Bulletin on June 8, 2013)

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RR 11-2013 Full Text

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RR No. 10-2013

REVENUE REGULATIONS NO. 10-2013 issued on June 6, 2013 amends further pertinent provisions of Revenue Regulations (RR) No. 2-98, as last amended by RR No. 30-2003, which provides for the inclusion of real estate service practitioners (i. e. real estate consultant, appraiser and broker) who passed the licensure examination given by the Real Estate Service under the Professional Regulations Commission (as defined in Republic Act No. 9646, “The Real Estate Service Act of the Philippines”) as among those professionals falling under Section 2.57.2(A)(1) of RR No. 2-98, as amended, and RR No. 14-2002 as regards income payments to certain brokers and agents.
Section 2.57.2(A)(1) of RR No. 2-98, as last amended by RR No. 30-2003, is hereby further amended to read as follows:

“Section 2.57.2. Income payments subject to creditable withholding tax and rates prescribed thereon. - xxx xxx

(A) Professional fees, talent fees, etc., for services rendered by individuals. – On the gross professional, promotional and talent fees or any other form of remuneration for the services of the following individuals – Fifteen percent (15%), if the gross income for the current year exceeds P 720,000; and Ten percent (10%), if otherwise:

(1) Those individually engaged in the practice of profession or callings: xxx designers, real estate service practitioners (RESPs), (i. e. real estate consultants, real estate appraisers and real estate brokers) requiring government licensure examination given by the Real Estate Service pursuant to Republic Act No. 9646 and all other profession requiring government licensure examination regulated by the Professional Regulations Commission, Supreme Court, etc. xxx”
Section 2.57.2(G) of RR No. 2-98, as last amended by RR No. 14-2002, is hereby further amended to read as follows:
“Section 2.57.2. – Income payments subject to creditable withholding tax and rates prescribed thereon. - xxx xxx
xxx xxx xxx

(G) Income payments to certain brokers and agents. - On gross commissions of customs, insurance, stock, immigration and commercial brokers, fees of agents of professional entertainers and real estate service practitioners (RESPs), (i. e. real estate consultants, real estate appraisers and real estate brokers) who failed or did not take up the licensure examination given by and not registered with the Real Estate Service under the Professional Regulations Commission. – Ten percent (10%).
xxx xxx xxx”

The Regulations shall take effect June 1, 2013 and shall cover income payments to be paid or payable starting June 1, 2013, which are required to be remitted within the month of July, 2013.

(Published in Manila Bulletin on June 8, 2013)

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RR 10-2013 Full Text

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RR No. 9-2013

REVENUE REGULATIONS NO. 9-2013 issued on May 10, 2013 amends certain provisions of Revenue Regulations No. 30-2002 relative to the payment of the amount offered as compromise settlement pursuant to Section 204 of the Tax Code, as amended.

Section 6 of Revenue Regulations No. 30-2002 shall now read as follows:
“SEC. 6. APPROVAL OF OFFER OF COMPROMISE. - Except for offers of compromise where the approval is delegated to the REB pursuant to the succeeding paragraph, all compromise settlements within the jurisdiction of the National Office (NO) shall be approved by a majority of all the members of the NEB composed of the Commissioner and the four (4) Deputy Commissioners. All decisions of the NEB, granting the request of the taxpayer or favorable to the taxpayer, shall have the concurrence of the Commissioner.

xxx xxx xxx
The compromise offer shall be paid by the taxpayer upon filing of the application for compromise settlement. No application for compromise settlement shall be processed without the full settlement of the offered amount. In case of disapproval of the application for compromise settlement, the amount paid upon filing of the aforesaid application shall be deducted from the total outstanding tax liabilities.
xxx xxx xxx”

(Published in Manila Bulletin on May 11, 2013)


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RR No. 8-2013

REVENUE REGULATIONS NO. 8-2013 issued on May 10, 2013 amends certain provisions of Revenue Regulations No. 7-2013, which provides for the policies and guidelines for the abatement of surcharges, interests and compromise penalties in relation to the filing of the 2012 tax returns of Philippine nationals and alien individuals employed by foreign governments/embassies/diplomatic missions and international organizations situated in the Philippines.

Section 2 of RR 7-2013 was amended to read as follows:
“Section 2. Mandatory Requirement- The employee-taxpayer covered by RMC 31-2013 shall secure from his/her employer (Foreign Governments/ Embassies/Diplomatic Missions and International Organizations), a Summary List of Employees as of December 31, 2012 in the format prescribed in ANNEX A hereto. International organizations whose non-Filipino employees enjoy immunity from taxation in accordance with the provisions of related international agreements or domestic laws need to provide information on their non-Filipino employees

In lieu of the Summary List of Employees, the employee-taxpayer may obtain a Certificate of Employment from his/her employer disclosing information on his/her position or rank, period of employment for 2012, and monthly salaries, emoluments and monetary benefits.
The Summary List of Employees or the Certificate of Employment shall be attached to the Declaration of Availment of Abatement (Annex B) which is prescribed from to be used in applying for abatement under these Regulations.”

Section 3 (ii) of RR 7-2013 was amended to read as follows:
“ii. In case a Summary List of Employees is submitted by the taxpayer, he or she must be included in the list as one of the employees, diplomatic agents, staff members or officials of the Foreign Government/Embassy/Diplomatic Mission and International Organization. If a Certificate of Employment was submitted, such certificate must clearly state the taxpayer’s position or rank, period of employment for 2012, and monthly salaries, emoluments and monetary benefits.”

(Published in Manila Bulletin on May 11, 2013)

 

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RR 8-2013 Full Text

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RR No. 7-2013

REVENUE REGULATIONS NO. 7-2013 issued on April 29, 2013 prescribes the policies and
guidelines for the abatement of surcharges, interests and compromise penalties in relation to the
filing of 2012 tax returns of Philippine nationals and alien individuals employed by foreign
governments/embassies/diplomatic missions and international organizations situated in the
Philippines.

The foreign governments/embassies/diplomatic missions and international organizations,
as employers of the concerned individuals, shall submit to the Office of the Commissioner of
Internal Revenue (OCIR) a Summary List of Employees as of December 31, 2012 (using the
prescribed format) on or before May 10, 2013. Only those employees who are included in the
said list may avail of abatement of surcharges, interests and compromise penalties under the
Regulations.

International organizations whose non-Filipino employees enjoy immunity from taxation
in accordance with the provisions of related international agreements or domestic laws need not
submit information on their non-Filipino employees.

Employees-taxpayers covered by Revenue Memorandum Circular No. 31-2013 who
failed to file their returns and/or declare the correct amount of income on his/her original returns
covering taxable year 2012 may file their original or amended returns, as the case may be, and
pay the tax due thereon on or before May 15, 2013. No surcharges and interests, as mandated
under Sections 248 and 249 of the Tax Code, shall be imposed. Further, no compromise penalty
prescribed under Revenue Memorandum Order No. 19-2007 shall be assessed upon filing
thereof. The abatement of surcharges, interests and compromise penalties are subject to the
following conditions:

a. The taxpayer must have duly registered with the BIR under the procedures prescribed
in pertinent issuances;

b. The taxpayer is included in the Summary List of Employees as of December 31, 2012
submitted by Foreign Governments/Embassies/Diplomatic Missions and International
Organizations;

c. The return must be filed and the basic tax due thereon must be fully paid not later
than May 15, 2013. In lieu of full payment, the taxpayer has the option to pay the tax
due on installment basis under Section 56 (A)(2) of Tax Code.

d. On or before May 15, 2013, the taxpayer shall file a Declaration of Availment of
Abatement (in triplicate copies) under these Regulations with the following
attachments:

i. Photocopy of the return filed together with attachments required under pertinent
revenue issuances;

ii. Proof of full payment of taxes or, in the case of payment by installment, proof of
partial payment of taxes; and

iii. Notarized certificate issued by taxpayer’s employer and duly confirmed by the
employee containing the monthly breakdown of salaries, emoluments and
monetary benefits received by the taxpayer during the 2012 calendar year.

e. No Letter of Authority, Tax Verification Notice, Audit Notice, Letter Notice, or
discrepancy notices of whatever nature has/have been served on the taxpayer
concerned covering the 2012 calendar year pursuant to Section 6(A) of the Tax Code;
and

f. The taxpayer is not the subject of any pending criminal case for tax evasion and other
criminal offenses under the Tax Code covering the 2012 calendar year, whether filed
in court or in the Department of Justice or subject of final and executory judgment by
court.

The filing of original returns or amended returns, as the case may be, and the payment of deficiency taxes made pursuant to the Regulations presupposes full and accurate disclosure by the concerned employees. It shall not preclude the BIR from investigating the correctness of such returns or sufficiency of the attachments, and/or availing the remedies provided for under the Tax Code.
The Commissioner shall constitute a Technical Working Committee (TWC) for the review of all Declaration of Availment of Abatement filed by availing taxpayers. The TWC shall send a notification to the concerned taxpayer that the availment of abatement under the Regulations was approved/disapproved by the Commissioner. In case of approval or disapproval, the TWC shall issue a certification of the acceptance and approval or a notice of disapproval thereof.

(Published in Manila Bulletin on May 1, 2013)
 
Download:
RR 7-2013 Full Text
Annex A
Annex B
Annex C
Annex D
Annex D-1
Annex E

Source:

BIR Philippines Website

Thanks and Courtesy of Bureau of Internal Revenue

RR No. 6-2013

REVENUE REGULATIONS NO. 6-2013 issued on April 22, 2013 amends certain provision of Revenue Regulations No. 6-2008 entitled “Consolidated Regulations Prescribing the Rules on the Taxation of Sale, Barter, Exchange or Other Disposition of Shares of Stock Held as Capital Assets”.
Section 7 of RR No. 6-2008 is hereby amended to read as follows

"SEC. 7. Sale, Barter or Exchange of Shares of Stock Not Traded Through a Local Stock Exchange Pursuant to Secs. 24 (C), 25 (A)(3), 25 (B), 27 (D) (2), 28 (A) (7) (C), 28 (B) (5) (C) of The Tax Code, as Amended. —
xxx xxx xxx
(c.2) Definition of "fair market value" of the Shares of Stock. — For purposes of this Section, "fair market value" of the shares of stock sold shall be:
(c.2.1) x x x
(c.2.2) In the case of shares of stock not listed and traded in the local stock exchanges, the value of the shares of stock at the time of sale shall be the fair market value. In determining the value of the shares, the Adjusted Net Asset Method shall be used whereby all assets and liabilities are adjusted to fair market values. The net of adjusted asset minus the liability values is the indicated value of the equity. For purposes of this section, the appraised value of real property at the time of sale shall be the higher of –
(1) The fair market value as determined by the Commissioner, or
(2) The fair market value as shown in the schedule of valued fixed by the Provincial and City Assessors, or
(3) The fair market value as determined by Independent Appraiser.”

(Published in Manila Bulletin on April 24, 2013)
 
Download:

RR 6-2013 Full Text

Source:

BIR Philippines Website

Thanks and Courtesy of Bureau of Internal Revenue